Title: Changsha’s Property Market Trends Towards Relaxing Purchase Restrictions
Subtitle: Favorable Policies Boost Homebuyer Confidence and Real Estate Market
Changsha, one of China’s strong second-tier cities, is experiencing significant changes in its property market as more than 80% of respondents believe purchase restrictions will be relaxed, according to a recent survey. The city has witnessed a surge in favorable policies in September, injecting new life into the real estate market and boosting the morale of potential homebuyers.
Xiao Liu, a young professional who has been working in Changsha for three years, is among those considering purchasing a property. Although he recently found a desirable apartment, he decided to wait, anticipating the possibility of even more favorable policies in the future. This cautious approach is prevalent among homebuyers, causing a surge in visits to real estate agents like Xiao Zheng, who have experienced a significant rise in customer footfall in recent weeks.
A survey conducted by Xiaoxiang Morning News and Morning Video on September 6 further supports the sentiment that purchase restrictions in Changsha will be relaxed. The survey, which involved 311 respondents, revealed that 58.06% of netizens are adopting a “wait-and-see” approach, while 25.81% plan to purchase a house. These figures indicate a cautious yet optimistic market outlook.
Regarding down payment funds, 32.26% of respondents preferred a 20% down payment, while 29.03% opted for a 30% down payment. Moreover, 58.06% of respondents expressed interest in purchasing ordinary residences, while 35.48% showed a preference for large flat floors.
The survey also shed light on the policies impacting the homebuying decisions of respondents. A significant 32.26% identified lower interest rates for existing housing as the most influential policy. Meanwhile, 25.81% cited qualifications for home purchase and subscribing for a house but not a loan as crucial factors.
With 83.87% of respondents expecting Changsha to relax purchase restrictions, industry insiders predict that the property market will experience three stages in the coming months: the release of policy accumulation demand, a period of confidence-driven wait-and-see demand, and an increase in capacity recovery demand.
Lu Jin, the general manager of CRIC’s Hunan region, believes that favorable policies combined with project launches in the third quarter will drive market growth during the traditionally active sales season of “Golden Nine and Silver Ten.” However, he also notes that the growth rate of Changsha’s urbanization rate has slowed down, and the market is shifting towards products that cater to the needs of young homebuyers.
Zhou Tao, the general manager of Hunan Shilian Bank, emphasizes that lifting purchase restrictions in Changsha is an inevitable trend, especially with the current market showing strong expectations for such a move. He believes that products for the market should focus on “smaller-sized” homes (80㎡-100㎡) to meet the demands of the expanding group of young homebuyers.
While the market has picked up since the implementation of the new policies, it has not yet reached the same level of activity as earlier this year. Experts suggest that the New Deal primarily stimulates existing customers and that stronger policy stimuli are needed to mobilize new customers’ willingness to purchase properties.
The overall sentiment is that the subsequent trend of Changsha’s property market is characterized by a volatile recovery, with a cautious yet optimistic outlook for potential buyers.
Source: Xiaoxiang Morning News